0001193125-15-007305.txt : 20150112 0001193125-15-007305.hdr.sgml : 20150112 20150112081204 ACCESSION NUMBER: 0001193125-15-007305 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20150112 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20150112 DATE AS OF CHANGE: 20150112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DDR CORP CENTRAL INDEX KEY: 0000894315 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 341723097 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11690 FILM NUMBER: 15520680 BUSINESS ADDRESS: STREET 1: 3300 ENTERPRISE PARKWAY CITY: BEACHWOOD STATE: OH ZIP: 44122 BUSINESS PHONE: 2167555500 MAIL ADDRESS: STREET 1: 3300 ENTERPRISE PARKWAY CITY: BEACHWOOD STATE: OH ZIP: 44122 FORMER COMPANY: FORMER CONFORMED NAME: DEVELOPERS DIVERSIFIED REALTY CORP DATE OF NAME CHANGE: 19940218 8-K 1 d848805d8k.htm FORM 8-K Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): January 12, 2015

 

 

DDR Corp.

(Exact name of registrant as specified in charter)

 

 

 

Ohio   1-11690   34-1723097

(State or other jurisdiction

of incorporation)

  

(Commission

File Number)

  

(IRS Employer

Identification No.)

 

3300 Enterprise Parkway, Beachwood, Ohio   44122
(Address of Principal Executive Offices)   (Zip Code)

Registrant’s telephone number, including area code: (216) 755-5500

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

  ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

  ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Item 8.01. Other Events.

DDR Corp. is filing herewith the following exhibits to its Registration Statement on Form S-3 (Registration No. 333-184221):

1. Computation of Ratio of Earnings to Fixed Charges; and

2. Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends.

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit Number

   

Description

12.1

    Computation of Ratio of Earnings to Fixed Charges

12.2

    Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

DDR CORP.
By:  

/s/ Christa A. Vesy

  Christa A. Vesy
 

Executive Vice President and Chief

Accounting Officer

Date: January 12, 2015

EXHIBIT INDEX

 

Exhibit Number

   

Description

12.1

    Computation of Ratio of Earnings to Fixed Charges

12.2

    Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
 EX-12.1 2 d848805dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

DDR Corp.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Amounts in Thousands)

 

    Year Ended December 31,     Nine Months Ended
September 30,		  
    2009     2010     2011     2012     2013     2013     2014  

Pretax (loss) income from continuing operations

   $ (213,964 )    $ (117,175 )    $ 2,485      $ 28,572      $ 5,067      $ 13,506      $ 57,420   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

              

Interest expense including amortization of deferred costs and capitalized interest

   $ 266,843      $ 248,586      $ 249,907      $ 236,716      $ 242,614      $ 176,367      $ 191,919   

Appropriate portion of rentals representative of the interest factor

     1,589        1,610        1,407        1,405        1,338        990        971   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

   $ 268,432      $ 250,196      $ 251,314      $ 238,121      $ 243,952      $ 177,357      $ 192,890   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Capitalized interest during the period

     (21,814 )      (12,232 )      (12,693 )      (13,327 )      (8,789 )      (6,768 )      (6,638 ) 

Amortization of capitalized interest during the period

     7,447        7,855        8,278        8,722        9,015        6,711        6,927   

Equity Company Adjustments

     9,733        (5,600 )      (13,734 )      (35,250 )      (6,819 )      (5,543 )      (10,241 ) 

Equity Company Adjustments Distributed Income

     10,889        7,334        9,424        13,165        15,116        10,533        6,358   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings before income taxes and fixed charges

   $ 60,723      $ 130,378      $ 245,074      $ 240,003      $ 257,542      $ 195,796      $ 246,716   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

     (a)        (b)        (c)        1.0        1.1        1.1        1.3   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Due to the pretax loss from continuing operations for the year ended December 31, 2009, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $207.7 million to achieve a coverage of 1:1.
   The pretax loss from continuing operations for the year ended December 31, 2009 includes consolidated impairment charges of $4.9 million, impairment charges of joint venture investments of $184.6 million and losses on equity derivative instruments of $199.8 million, which together aggregate $389.3 million.

 

(b) Due to the pretax loss from continuing operations for the year ended December 31, 2010, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $119.8 million to achieve a coverage of 1:1.
   The pretax loss from continuing operations for the year ended December 31, 2010 includes consolidated impairment charges of $84.9 million and losses on equity derivative instruments of $40.2 million, which together aggregate $125.1 million.

 

(c) For the year ended December 31, 2011, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $6.2 million to achieve a coverage of 1:1.
   The pretax income from continuing operations for the year ended December 31, 2011 includes consolidated impairment charges of $63.2 million and impairment charges of joint venture investments of $2.9 million, which together aggregate $66.1 million, that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2013, as amended.
EX-12.2 3 d848805dex122.htm EX-12.2 EX-12.2

Exhibit 12.2

DDR Corp.

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS

(Amounts in Thousands)

 

    Year Ended December 31,     Nine Months Ended
September 30,		  
    2009     2010     2011     2012     2013     2013     2014  

Pretax (loss) income from continuing operations

   $ (213,964 )    $ (117,175 )    $ 2,485      $ 28,572      $ 5,067      $ 13,506      $ 57,420   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

              

Interest expense including amortization of deferred costs and capitalized interest

   $ 266,843      $ 248,586      $ 249,907      $ 236,716      $ 242,614      $ 176,367      $ 191,919   

Appropriate portion of rentals representative of the interest factor

     1,589        1,610        1,407        1,405        1,338        990        971   

Write-off of preferred share original issuance costs

     —          —          6,402        5,804        5,246        5,246        1,943   

Preferred Dividends

     42,269        42,269        31,587        28,645        27,721        21,113        18,460   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges, write-off of preferred share original issuance costs and preferred dividends

   $ 310,701      $ 292,465      $ 289,303      $ 272,570      $ 276,919      $ 203,716      $ 213,293   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Capitalized interest during the period

     (21,814 )      (12,232 )      (12,693 )      (13,327 )      (8,789 )      (6,768 )      (6,638 ) 

Write-off of preferred share original issuance costs

     —          —          (6,402 )      (5,804 )      (5,246 )      (5,246 )      (1,943 ) 

Preferred Dividends

     (42,269 )      (42,269 )      (31,587 )      (28,645 )      (27,721 )      (21,113 )      (18,460 ) 

Amortization of capitalized interest during the period

     7,447        7,855        8,278        8,722        9,015        6,711        6,927   

Equity Company Adjustments

     9,733        (5,600 )      (13,734 )      (35,250 )      (6,819 )      (5,543 )      (10,241 ) 

Equity Company Adjustments Distributed Income

     10,889        7,334        9,424        13,165        15,116        10,533        6,358   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings before income taxes and fixed charges

   $ 60,723      $ 130,378      $ 245,074      $ 240,003      $ 257,542      $ 195,796      $ 246,716   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to combined fixed charges and preferred dividends

     (a)        (b)        (c)        (d)        (e)        (f)        1.2   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Due to the pretax loss from continuing operations for the year ended December 31, 2009, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $250.0 million to achieve a coverage of 1:1.
   The pretax loss from continuing operations for the year ended December 31, 2009 includes consolidated impairment charges of $4.9 million, impairment charges of joint venture investments of $184.6 million and losses on equity derivative instruments of $199.8 million, which together aggregate $389.3 million.

 

(b) Due to the pretax loss from continuing operations for the year ended December 31, 2010, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $162.1 million to achieve a coverage of 1:1.
   The pretax loss from continuing operations for the year ended December 31, 2010 includes consolidated impairment charges of $84.9 million and losses on equity derivative instruments of $40.2 million, which together aggregate $125.1 million.

 

(c) For the year ended December 31, 2011, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $44.2 million to achieve a coverage of 1:1.
   The pretax income from continuing operations for the year ended December 31, 2011 includes consolidated impairment charges of $63.2 million and impairment charges of joint venture investments of $2.9 million, which together aggregate $66.1 million, that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2013, as amended.

 

(d) For the year ended December 31, 2012, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $32.6 million to achieve a coverage of 1:1.
   The pretax income from continuing operations for the year ended December 31, 2012 includes consolidated impairment charges of $58.8 million and impairment charges of joint venture investments of $26.7 million, which together aggregate $85.5 million, that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2013, as amended.

 

(e) For the year ended December 31, 2013, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $19.4 million to achieve a coverage of 1:1.
   The pretax income from continuing operations for the year ended December 31, 2013 includes consolidated impairment charges of $45.0 million and impairment charges of joint venture investments of $1.0 million, which together aggregate $46.0 million, that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2013, as amended.

 

(f) For the nine months ended September 30, 2013, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $7.9 million to achieve a coverage of 1:1.
   The pretax income from continuing operations for the nine months ended September 30, 2013 includes consolidated impairment charges of $22.9 million, that are discussed in our Quarterly Report on Form 10-Q for the nine months ended September 30, 2014.